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This letter is in response to your two letters of XXXXX, addressed to Mrs. Madeleine Walker. Through those letters, you requested that the XXXXX XXXXX and XXXXX brands of cigarettes, including their numerous brand extensions, be prescribed for the purposes of the export tax and tobacco marking exemptions, under the Export Tax Exemption Regulations (Tobacco Products) and Tobacco Regulations, respectively.
The following is a listing of the XXXXX and XXXXX brand extensions for which you have made these requests:
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From the information you have provided, I understand that these are new products that your company intends to sell exclusively in the United States. You also state that these products will not be sold in Canada, but will be shipped for export in bond.
As was confirmed in our previous letter to you, dated XXXXX, any future requests for tobacco brands or cigarettes to be included on the lists of tobacco brands under Schedule I to the Export Tax Exemption Regulations (Tobacco Products) and/or under Schedule II to the Tobacco Regulations (for the marking exemption) will not be "pre-approved" in anticipation of the necessary regulatory changes.
Accordingly, we have recommended that the above-noted brands and brand extensions be approved by the Minister of National Revenue for inclusion in the schedule of tobacco brands eligible for the export tax exemption in accordance with the provisions of subsection 23.3(1) of the Excise Tax Act. As well, we have requested that the Governor General in Council add the same brands and their extensions to the schedule of tobacco brands that qualify for the exemption from marking under subsection 202(4) of the Excise Act. However, until such time as the necessary regulatory amendments are actually made, the XXXXX XXXXX and XXXXX brand extensions listed above do not qualify for exemption from the normal export tax and marking requirements that apply under the Excise Tax Act and Excise Act.
The process for adding the brands and brand extensions listed in our previous letter of XXXXX, and the XXXXX and XXXXX brands listed in the present correspondence, has been started. We anticipate that the process for completing the regulatory changes will take approximately six to nine months.
Should you require any further information, please contact me at (613) 954-4208 or Steve Mosher at (613) 941-1497.
Sincerely,
Preston Gallant, CGA
Manager
Excise Duty Operations
Excise Duties and Taxes Division
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